Transplace announces TPG is new equity partner

Earlier this week, non asset-based third-party logistics (3PL) services provider Transplace said it has selected TPG Capital, the global private equity platform of alternative asset firm TPG, as its new equity partner.

Transplace officials said that TPG will acquire Transplace from Greenbriar Equity Group LLC, Transplace’s equity partner going back to May 2013, when it acquired

Transplace from an affiliate of CI Capital Partners, a New York-based private equity firm. The CI affiliate acquired Transplace in late 2010. Transplace did not provide financial terms of the transaction, but a Wall Street Journal report pegged it at nearly $1 billion.

Transplace was established in 2000 as a collaboration among six transportation carriers—J.B. Hunt Transport Services, Covenant Transport, Swift Transportation Co., M.S. Carriers Inc. (which subsequently merged with Swift), U.S. Xpress Enterprises, and Werner Enterprises. When the companies first joined together to establish Transplace, it was viewed as a way to bring shippers and carriers together through a Web-based platform to efficiently collaborate on transportation and logistics planning and execution.

Transplace is widely viewed as one of the top ten capacity freight brokers and leading 3PLs and the largest managed transportation service provider in North America and generates revenue north of $1.8 billion from more than 1,000 sectors across various sectors, including manufacturing, retail, chemical and consumer packaged goods. It also works with shippers to manage complex logistics and shipping needs via its proprietary Web-based technology platform. Over the last five year, net revenue growth for Transplace has increased by 150%.

Transplace President & COO Frank McGuigan said that with TPG serving as the company’s new equity partner, there will be increased investment and innovation that will benefit Transplace.

“TPG recognizes the tremendous growth and innovation opportunities in the transportation industry and partnering with them will allow Transplace to increase its investment in enhancing its technology and services in order to deliver even greater value to its customers,” he said. “Essentially, daily operations will be more of the same but with greater velocity. Transplace will leverage TPG resources to continue down our path of innovation.”

Over the last several years, Transplace has been very active on the acquisition front, and that looks like it will continue to be the case with TPG in the fold. 

“TPG will support the continued growth of Transplace’s business, while building value for our customers and creating attractive opportunities for employees,” explained McGuigan. “Transplace has completed seven transactions and with TPG Capital, we will continue to supplement our strong organic growth track record with strategic acquisitions. Transplace strives to find companies that are close to our current services and add value to our customers, whether that’s to strengthen our presence in or allow us to enter a particular vertical or geography.”

TPG Capital Partner and Global Head of Industrials Jack Daly was enthusiastic about this new partnership. 

“As customer expectations for fast and transparent service and delivery increase, the supply chain is quickly becoming more complex. As a result, many companies have started to outsource freight spend in order to achieve better procurement at a lower operating cost,” said Daly in a statement. “Transplace is providing an expansive, high-quality, customizable solution for managing today’s supply chain. The company’s leadership, ongoing focus on innovation, and customer service is unmatched, and we believe Transplace is well positioned to thrive from the immense technological change happening within logistics today. We are excited to partner with Tom [Sanderson, Transplace CEO], Frank and the Transplace team to accelerate growth, both organically and through acquisition.”